5 Brilliant Ways to Get People To Spend More

Consumers are ravenous for a great shopping experience and proven practices can help retailers add sizzle to their offerings. In fact, boosting sales per customer is easier than retail companies might expect. During these final weeks of 2017, retailers can boost “share of wallet” by appealing to consumers’ needs, emotions and senses.

Here are five ways to maximize your retail sales across channels.

  1. Emails work better than you think

Why wait for shoppers to come to you, when you can go to them? Email marketing campaigns give retailers a powerful, direct and personalized way to engage their audience.

Marketing sherpa survey
MarketingSherpa Survey : 72% Communication happen through Email

What’s better, consumers actually prefer to receive emails from companies – more than any other form of communication. While it sounds counter-intuitive, a MarketingSherpa study found 71% of American adults prefer to communicate with companies via email. That exceeds social media, text messages and phone calls combined.

Email’s prevalence and popularity also gives retailers the opportunity to meet consumers where they already spend their time. At any given moment, more people are logged in on email than social media. Adobe reports we are spending 17% more time in our inboxes compared to last year.

Targeted email campaigns can solve common omnichannel pain points. Consider Amazon’s emails alerting shoppers to timely sales, such as “Save up to 54% today!” and “”Save $5 on Whole Foods Market products.” Amazon also gently reminds consumers their abandoned cart items and recommends products according to recent browsing and buying patterns.

For your e-commerce site, use your consumer data insights to send targeted email campaigns. Email can enage and retain your customers, and influence them to keep coming back to buy more.

 

  1. Navigation is a science

 

A thoughtful, well-designed route to checkout, including effective in-store and online layouts, can maximize impulse buys. For instance, tucking away essentials and utility buys amidst impulse buys is a classic trick retailers often use.

Can your website architecture mimic this approach? Using strategic balance, design the shopper’s journey by sprinkling in enough deals and product highlights to entice them to buy. Also refrain from offering too many options. Excessive promotions can annoy shoppers, driving them to abandon their carts, which is easier to do online than in stores.

Target store next generation design
Next Generation Target Store

 

Retail store experts study how we walk around and grab products, then design the store layout to spark sales. Constant layout changes can also pleasantly baffle shoppers into noticing new merchandise. Since our youth, we have been conditioned to derive joy from receiving new things.That’s why shoppers often savor the surprise and delight of discovering what’s “new and “now.” We even share our novel treasures with our Instagram and Facebook friends.

To drive excitement, Target is investing in store improvements over the next three years to create a fresh new look. Changes include curved center aisles for greater visibility and two entrances for easier access.  Bold window displays also add immediate emotional impact to boost buying behavior.

On your e-commerce site, how can you use navigation to entice shoppers without overwhelming them as the browse for products?

 

  1. Trials and Demos: Not-so-free samples

 

Freebies are the best ads and salespeople for your product, consistently boasting effective response rates. By giving customers free trial packs, the retailer or brand demonstrates their confidence in the product’s quality and performance. Sampling also reminds the customer that the power of decision lies with them, and they can feel assured the product is tried and tested.

Starbucks free beverage samples
Starbucks’ offers free beverage samples

 

The priniciple of reciprocity is at play here. When customers receives something for free, they feel compelled to give back (buy buying merchandise) to bring balance to the relationship. Shoppers even “feel a level of social ‘pressure’ to make a post-sample purchase.”

That’s why Costco is committed to free food sample and Starbucks’ offers free beverage samples. Yet successful sampling goes beyond edibles and packaged grocery. Beauty and personal care items work too. Samples of swanky Orogold Cosmetics moisturizer prompts shoppers to try it in the hopes they invest in a full container.

Companies aren’t giving samples away for altruism – it’s full-on capitalism, as there’s a direct link between samples and sales. Despite the cost of giving items away for free, sampling pays off. Retailers have boosted sales by as much as 2,000% by initiating low-risk product trial to earn consumer confidence.
When a shopper places an online order, could your company throw in free samples to promote trial and brand trust?

 

  1. Check-out Aisles

 

Let’s be real: One of the most dreaded parts of a shopper’s in-store journey is the time-sucking checkout line. Yet this point-of-sale experience represents a lucrative opportunity for retailers to invigorate bored shoppers. Showcasing a rainbow of attractive travel packs, accessories and single-use products awakens their senses as they wait.

To spark spontaneous purchasing, retailers have strategically placed affordable items along the checkout lanes since the 1950s. It’s an effective practice, too. A.T. Kearney found 40% of shoppers spend more money than they had planned to spend in store.

Distracting in-store customers with impulse products works best with a single serpentine line. (Multiple lines for multiple registers are less effective). That’s because retailers can create more shelf space for diverse impulse products, which every customer sees.

On your e-commerce site, can you make the checkout process helpful and alluring. For instance, can you add colorful reminders of affordable impulse purchases?

 

  1. When it comes to delivery, “free” is the magic word

 

Ideally, fast and free is where it’s at in e-commerce. Setting a minimum spending threshold for free delivery can work wonders for online retail. So can incremental spends tied to expedited shipping.

One report found 93% of survey respondents said free shipping encouraged them to buy more online. Another study found a 48% increase in new customer acquisition with a select free shipping offer.

Consumers now expect free shipping, which has evolved into a competitive necessity for online retailers. Forbes recently declared that “for all retailers, the future is fast, free shipping.” Shipping fees can act as obstacles on the path to purchase. Removing such costs can make the transaction much more desirable to increasingly savvy shoppers.

In e-commerce, companies must now “pay to play,” so incurring delivery expenses is now a common cost of doing business. Can your website get in the game by offering the free delivery consumers now expect?

 

Ultimately, simple solutions lie within retailers’ grasp to increase revenue by improving the customer experience, both in-store and online. Use emails, navigation tactics, sampling, checkout opportunities and free delivery. These tactics will add sizzle to your offerings and keep customers hungry for more.

 

 

How Retailers Make You Spend More

At this time of year, the retail market always gets more competitive, cluttered and chaotic. However, given the sector’s contraction in 2017, it is more important than ever to maximize your sales during the upcoming holiday season. To inspire you to stand out and sell, here are proven best practices from four retail dynamos to help you boost your sales revenue to stay competitive and grow your e-commerce site so you end 2017 strong.

 

  1. Zara- Fast Not First

 

Global fast fashion powerhouse Zara knows location is everything. The retailer selects real estate strategically, opening stores in areas where it can cozy up to high-fashion brands. By surrounding Zara stores with upscale retail stores selling exorbitantly priced products, Zara looks significantly more affordable for products that appear somewhat similar to its neighbors’ – which motivates shoppers to buy from Zara.

zara color trends chocolate

The products at Zara reflect trends popular among upscale apparel brands rather than Zara’s direct competitors like H&M or Forever 21. As a result, Zara’s merchandise looks high-end and feels exclusive, which improves the brand experience by offering a premium look for an affordable price. Similarly, for your online assortment, make your products look closer to your aspirational competitors than your actual competitors so shoppers feel like they get more value when they buy from your company.

Zara also strives to be fast, not first. The company adapts to fashion trends at a comfortable pace for most of its demographic, while keeping its merchandise rotation fresh and timely. Instead of having a first-to-market mindset, Zara taps into consumers’ strong fear – and regret – of missing out. The retailer uses scarcity to boost consumers’ desire to buy items immediately rather than risk coming back later and finding their size is gone. That’s why at Zara stores “there’s always something new, and clothes are never stacked too high,” which influences Zara shoppers to pay full price to seize the opportunity to buy right away. On your e-commerce site, the timing of trends is everything, as you don’t want to be too early or too late with trends. Identify your optimal window and consider limiting your inventory to activate consumers’ fear of missing out, as the scarcity principle can boost sales.

 

  1. Target- Try Getting Out

 

Have you ever noticed the lack of background music in Target stores? It’s deliberate. The mass merchandiser’s decision to exclude music is an attempt to make the customer experience more enjoyable by preventing shoppers from being distracted from all the fantastic in-store deals. How can your e-commerce site cancel out the extra “noise,” such as decluttering your homepage or making the buying process as simple and streamlined as one-click ordering so shoppers can concentrate on discovering and buying great products?

 

In a Target store, consumers may find that navigating to their desired aisle is like going through a fun maze filled with treats, great deals and eye-catching displays. Similarly, keep your online customer journey positive and enjoyable from the homepage banner to the checkout page by designing a customer-centric, inspiring web architecture. Fill each webpage with attractive and even unexpected products to surprise and delight shoppers to make them more willing to explore and spend.

 

Just like customer experience leader Starbucks, Target excels at anticipating customers’ needs for a frictionless customer experience. Associates focus on helping people rather than pushing products. For instance, store associates proactively look for the next problem to solve, rather than aggressively trying to sell. Attentive associates notice shoppers’ patterns and pain points to serve better. On your e-commerce site, which scenarios pop up often, and what can you learn from them to better anticipate consumers’ out-of-the-box needs? For instance, perhaps you can simply let customers try before they buy to prevent the hassle and time associated with product returns to improve brand trust, sales and loyalty.

 

Winding through Target’s spacious store footprint can tire out shoppers as they navigate from one corner of the store to the other. The retailer grasps their exhaustion as an opportunity to wave relaxing products in shoppers’ faces to encourage pampering to reinvigorate them. Similarly, your e-commerce site should match your customers’ lifestyle needs to the products you recommend they add to their cart. Use data on consumers’ preferences, past purchases and consumer reviews to determine which items to recommend as solutions to their pain points, which can encourage them to spend more.

 

 

  1. Sephora- Trying is Believing

 

Cosmetics giant Sephora generously offers shoppers free trials and samples to take home, the retailer encourages consumer awareness and engagement,  increasing the likelihood that shoppers will like and buy their products. This tactic reflects the principle of reciprocity: when someone gives us something we feel compelled to give something back in return. Do you “give to get”? Do you allow shoppers to sample your products to help them believe in your merchandise and trust your company?

sephora product display

Also, who among us can resist adorable travel packs? Sephora displays these miniature products at the checkout counters- impulse purchases masquerading as endearing, affordable luxuries. With their single serve size, innovative packaging and colorful assortment, travel packs look irresistible, which increases their sales, even when their unit price is a smidge ridiculous. Does your e-commerce site offer single-serve units or the equivalent – something small, cute and too attractive to turn down?

 

Sephora also offers a 60-day return policy. The company permits the free return of used products if a customer exceeds a certain purchase amount. That way, if a beauty item irritates their skin or a lipstick looks less flattering at home, shoppers feel assured they can return the item, which increases their likelihood to buy it in the first place. How does your return policy compare to Sephora’s?


  1. Macy’s- Pay More To Pay Less

 

Department store chain Macy’s is using its new loyalty program to reward customers based on how much they spend, so when shoppers spend more, they pay less. Providing a direct relationship between purchases and discounts can inspire repeat purchases by rewarding their loyalty.  On your e-shop, do you reward your customers with discounts and offers after their purchases to motivate them to keep coming back?
Another way Macy’s convinces shoppers to buy more is with discount bundling. By offering multiple products at the same time, the retailer increases the average transaction value and appeals to consumers by showing how much they save by buying the products together rather than as individual items. Consider bundling multiple products on your website and emphasize the savings shoppers receive if they buy the items together.

 

By offering a full refund on cosmetics, Macy’s earns consumer confidence because shoppers know they avoid the risk of having to keep a purchase they regret. Consumers feel more willing to spend if they know they can return a product without any hassle or financial consequences. Does your e-commerce site offer a full refund policy to make shoppers more open to buying?

 

Macy shoppers do not need a receipt to exchange items, which makes the shopping experience smoother, friendlier and more generous than exchange policies that demand receipts. Easy exchange policies make customers more willing to buy. When online customers shop on your site, what exchange policy do you offer?
These proven customer-centric tips helps major retailers persuade shoppers to buy more. These effective tips can also help you boost your e-commerce website sales and – best of all – there’s still time to implement them to maximize your holiday sales this year.

In continuation with this blog post about factors that make people spend more, the next piece focuses on five tactics you can use to improve your in-store and online experience, earn more sales and end the year strong.

Read it here .

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